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European society (societas Europea) in the Czech Republic

23/08/2007

On 16 May 2007, the first “Czech” European society was entered into the Commercial Register. The main benefit of this form of company is the possibility to move its registered office within the European Union.


A European society (company) or societas Europea (SE) is a European capital company that is similar to our joint-stock company. The subscribed registered capital must amount to at least EUR 120 000.


The most common way to establish a European company is to merge joint-stock companies, where least two are domiciled in a different EU Member State. In addition to joint-stock companies, even other legal entities from different countries can set up a European company either in a holding or establish a subsidiary of a European company by subscribing their shares. Another possibility is to change a joint stock company to a European company, provided it has a subsidiary in a different EU Member State.

The main benefit is the possibility to move the registered office of a European company within the European Union. This is advantageous especially for tax reasons. It is, however, possible to change a European company back to a joint-stock company in the country where it is domiciled. For this reason, this legal form can be used to transfer the seat of a joint-stock company from one Member State to another. Another benefit is of course the prestige of a European company across the European Union.